Bankless 77 - China's Digital Currency Revolution | Richard Turrin
Aug 9, 2021
Richard Turrin, a fintech executive and bestselling author, shares his insights on China's groundbreaking Central Bank Digital Currency (CBDC) and its implications for the global financial landscape. He discusses how China's rapid fintech innovations threaten U.S. dollar dominance and contrasts the user experience in China with outdated Western banking systems. Turrin also outlines the potential of upcoming smart contracts and explores how CBDCs could revolutionize financial inclusion while possibly reshaping the relationship between traditional currencies and cryptocurrencies.
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Banking System Inefficiency
- Richard Turrin's brother couldn't wire him money because US banks require in-person visits for wires, highlighting US banking system limitations.
- Turrin contrasts this with the ease of online SWIFT transfers from his Singaporean bank and the cumbersome experience with Zelle, emphasizing the relative convenience of Chinese fintech.
China's Fintech Leapfrogging
- China's digital currency system is advanced, processing $52 trillion in mobile payments annually, dwarfing Western counterparts.
- WeChat and Alipay offer free or very low-fee transactions, contrasting with the high fees associated with Western fintech built on credit card rails.
China's Two-Phase Digital Currency Strategy
- China's digital currency strategy is evolving from a corporatized, platform-based system to a central bank digital currency (CBDC).
- The initial phase, using platforms like WeChat and Alipay, digitized RMB and facilitated $52 trillion in mobile payments, significantly impacting China's GDP.
